Russian Central Bank mulling FX liquidity ratio for banks - dep governor
SOCHI. Sept 26 (Interfax) - The Central Bank of Russia is considering introducing a forex liquidity ratio for banks, Central Bank Deputy Governor Olga Polyakova said.
"We are carrying out targeted work on deforexation. We have even thought about a forex liquidity ratio," Polyakova said in Sochi at the international banking forum organized by the Association of Banks of Russia.
The CBR plans to consult with the banking community at the end of 2024 or the beginning of 2025 on implementing the ratio, First Deputy Director of the CBR Banking Regulation and Analytics Department Anton Naberukhin said in a presentation.
"We will begin discussing the matter with the banks. Even if we conclude that we need the ratio, then we would most likely begin to develop it only next year, and it would not enter into force sooner than 2026," Polyakova told reporters.
She said FX risk continued to affect various banks to varying degrees. "Borrowers are still taking out FX loans out of financial considerations. Obviously, it is not very advantageous for them to take loans [in rubles] at such a high rate, so they come to you for foreign currency loans," she said, addressing the bankers.
Deputy CEO of Gazprombank Alexander Sobol called for not complicating currency regulation for banks that manage risks well. "I would not disenfranchise us with currency regulation. If a bank manages the risk it has taken on well, then artificially worsening and complicating foreign currency lending for it, say, in yuan, is wrong in my opinion. But ensuring high-quality management of this risk - this, of course, must be done," he said at the forum on Thursday.
He said the strong demand for loans in yuan was associated not only with the difference in interest rates on loans in rubles, but also with getting rid of toxic currencies from portfolios. "At our bank, we work on such instruments only with companies for which this is a natural hedge, that is, those who have revenue in yuan, and for them, especially during the period when the derivatives market is very limited in its instruments and term, loans in yuan are a way to manage the currency risks that companies take on," he said.
Sobol said almost half of the loans in dollars and euros are converted into ruble loans, and half into yuan. Loans in yuan are limited by the availability of liquidity in this currency and the structure of a borrower's portfolio.
